FINRA Saves Three-Day Weekend
On July 11, FINRA announced it would postpone a decision requiring brokers to disclose to their clients the amount of their recruiting checks. The decision is a huge relief for Wall Street brokers who have been agonizing whether to move before the ruling. This decision could cause brokers who are on the fence to leave their firms sooner rather than later since forced disclosure of their sizable recruiting checks won ’ t be required by FINRA. Brokers and Holidays When brokers do move, it ’ s likely to be on a three-day weekend, such as Labor Day, July 4, Memorial Day or President's Day. Extended weekends are the jumping off point of choice for breakaway brokers because they provide the least amount of friction in the transition. On a three-day weekend, the boss is usually gone. So are many of the remaining brokers who will reach out to the departing broker ’ s clients. With a skeletal crew, the firm's retention plan will have to wait until people re...